Core Viewpoint - Roku was a significant beneficiary during the early COVID-19 pandemic, with its stock reaching nearly $500 at its peak, but it has since declined by approximately 88% from those highs, raising questions among investors about its future performance [1]. Company Summary - Roku's stock performance peaked during the pandemic, indicating strong demand for streaming services during that period [1]. - The current stock price reflects a substantial decline, leading to investor uncertainty regarding the company's ability to recover to previous highs [1].

Group 1 - Analysts expect 'Net Revenue- Platform' to be $807.84 million, indicating an increase of +8.6% year over year [1] - Roku is projected to report a quarterly loss of $0.45 per share, which represents a 40.8% increase year over year [2] - Revenue projections for Roku are set at $935.29 million, reflecting a 10.4% increase from the same quarter last year [2] Group 2 - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [3] - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, as there is a strong correlation between earnings estimate trends and short-term price performance [4] Group 3 - Analysts estimate 'Net Revenue- Devices' at $127.44 million, suggesting a year-over-year change of +23.3% [6] - The estimated 'Active Accounts' are projected to reach 82.99 million, up from 73.5 million in the same quarter last year [6] - The estimated 'ARPU' is $40.62, slightly down from $40.67 a year ago [6] Group 4 - 'Streaming Hours' are projected to reach 30.11 billion, compared to 25.1 billion in the same quarter last year [7] - Analysts predict 'Gross Profit- Platform' will be $428.08 million, up from $395.83 million in the same quarter last year [7] Group 5 - Roku shares have decreased by -1.5% in the past month, while the Zacks S&P 500 composite has moved -0.2% [8] - Roku holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [8]

Whatever happens next week in the earnings report, the stock is likely to swing big one way or the other. Roku can't catch a break Weakness in the streaming sector weighed on Roku. Roku stock has been eating dirt since the pandemic's height. It ramped up spending at the wrong time and is still trying to rebalance its cost structure and show investors it can be sustainably profitable. At the same time, a report from Comcast showed that its Peacock streaming service is losing subscribers, with total subs down ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [1][2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [2][5] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in major cities such as London, New York, Toronto, Vancouver, Sydney, and Perth [4] Group 2 - The company employs human content creators with decades of expertise and utilizes technology to enhance workflows [3][6] - Proactive adopts automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [7]

Company Overview - The video streaming company is projected to report earnings of -$1.94 per share and revenue of $3.92 billion for the annual period, reflecting increases of +61.28% and +12.46% respectively from the previous year [1] - The company’s shares have increased by 13.96% over the last month, outperforming the Consumer Discretionary sector's loss of 1.18% and the S&P 500's gain of 1.96% [2] Analyst Projections - Investors are advised to monitor recent shifts in analyst projections for the company, as these revisions indicate changing near-term business trends and a favorable outlook on business health and profitability [3] - The consensus EPS projection has remained stagnant over the past 30 days, with the company currently holding a Zacks Rank of 3 (Hold) [4] Market Performance - In the latest market close, the company's stock price reached $62.08, with a slight increase of +0.04% compared to the previous day, outperforming the S&P 500's daily loss of 0.16% [6] - The company is scheduled to release its earnings on August 1, 2024, with an expected EPS of -$0.45, indicating a growth of 40.79% compared to the same quarter last year, and revenue expected to be $935.29 million, showing a 10.4% increase year-over-year [7] Industry Context - The Broadcast Radio and Television industry, which includes the company, is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 100, placing it in the top 40% of over 250 industries [9]

Teaching Peacock to fly Peacock is smart, strategically jacking up its prices ahead of the Summer Olympics that start next week with exclusive coverage on Comcast's NBC. With essentially every premium streaming service outside of Netflix struggling with profitability, raising prices is one way to get there. Nothing but Netflix Netflix still announced something on Thursday that should be interesting to Roku investors. Netflix has a Basic tier that costs $11.99 a month that it stopped offering to new members ...

Roku Inc. (ROKU) recently collaborated with Sony's (SONY) Sony Pictures Television to add NFL Media's series, GMFB: Overtime, to the successful Good Morning Football series. Roku also secured exclusive multi-year rights for the Major League Baseball (MLB) Sunday Leadoff live games. The company offers Sunday MLB games for free on The Roku Channel and an all-new MLB Zone to help baseball fans discover live and upcoming games. Roku recently partnered with Fandango for a new CTV relationship. This would enable ...

Once a pandemic darling, television streaming platform Roku (ROKU 1.83%) is showing signs of investable value after a multi-year stock boom and bust. Like many other companies that benefited from the stay-at-home policies of the COVID-19 response, Roku stock rose parabolically beginning in mid-2020. Roku's rise coincided with high profile investor Cathie Wood's Ark Invest vehicles making multiple purchases of its shares. Of course, one year's bull market often turns into the next year's bear market, and sha ...

Core Viewpoint - Roku is shifting its focus towards expanding its device offerings, but this strategy may not yield long-term benefits due to increasing competition and declining margins [1][5][15] Group 1: Business Strategy - Roku has been diversifying its product line beyond streaming sticks to include audio products, smart home devices, and its own TVs, which previously relied on third-party manufacturers [6][11] - The company aims to increase its device offerings, which could lead to a significant change in its revenue mix and open up new growth opportunities [2][12] Group 2: Financial Performance - Roku's revenue growth has been improving in recent quarters, although it remains below its long-term average [7] - Currently, approximately 14% of Roku's revenue comes from devices, while 86% is generated from its platform segment, which includes digital ad sales [12] - Despite the growth in revenue, Roku has experienced a gross loss on its devices for the past four quarters, indicating challenges in maintaining profitability [8][13] Group 3: Market Challenges - The competitive landscape is becoming more challenging, particularly with the rise of smart TVs that have their own technologies, reducing the demand for Roku's streaming sticks [5][9] - The potential acquisition of Vizio by Walmart could further intensify competition in the smart TV market, posing additional risks for Roku [5][9] Group 4: Stock Performance - Roku's stock has seen a dramatic decline of 85% over the past three years, raising concerns about its future prospects [9][15] - The company's transition towards a broader array of products may not improve its bottom line, as the shift to hardware products typically results in lower margins [13][15]

Core Viewpoint - The company has made progress in gaining market share and is positioned favorably in terms of risk/reward, leading to a recommendation to buy Roku stock [1][7]. Market Penetration - Roku Channel has achieved a market share of 1.5% in TV usage across all platforms, indicating successful penetration [2]. - Streaming households have increased from 71.6 million in Q1 2023 to 81.6 million in Q1 2024, reflecting a 14% year-over-year growth [3]. - Streaming hours have risen from 25.1 billion in Q1 2023 to 30.8 billion in Q1 2024, marking a 23% increase [3][10]. Advertising Strategy - The company has seen an increase in programmatic ad spending, highlighting the strength of its advertising offerings [4]. - Roku has launched its own ad exchange, enhancing the appeal for advertisers to spend on its platform [11]. - A partnership with Trade Desk opens Roku's ad inventory to a larger network of advertisers, further expanding its advertising reach [22]. Financial Performance - The company anticipates a sales growth of approximately -10% over the next two years, driven by the expansion of its ad platform [5]. - Roku's platform revenue accounts for 86% of total revenue, which has slowed significantly since the pandemic [18][27]. - The company is currently trading at 2.3x forward sales and 1.7x EV/sales, indicating depressed investor sentiment [5][24]. Competitive Landscape - The rise of free ad-supported streaming platforms like Tubi indicates a shift in consumer behavior towards ad-supported content [9][20]. - Competition in both device and advertising spaces will be crucial to monitor as Roku moves into the second half of FY24 [19]. Valuation Insights - The current valuation appears to have priced in the worst-case scenarios, suggesting potential for multiple expansion [13][24]. - Compared to the S&P 500's expected growth rate of ~4.8%, Roku shows significant upside potential as it enters H2 2024 [24].